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Profits of Products

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Profits of Products

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About this activity

Test your understanding of product profits.

Created by

jasmina raouf
jasmina raouf
Egypt

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Profits of Products
 

Profits of ProductsOnline version

Test your understanding of product profits.

by jasmina raouf
1

Gross profit is calculated as Revenue minus Cost of Goods Sold.

2

Profit margin is always higher than markup.

3

Profit margin and markup are related metrics but measure different things.

4

Gross profit equals total revenue minus all expenses.

5

Contribution margin equals net profit after fixed costs.

6

Raising the selling price can increase profit per unit if demand remains stable.

7

If variable costs are zero, profit is guaranteed to be positive regardless of revenue.

8

Break-even occurs when total revenue equals total costs.

9

Net profit equals gross profit minus operating expenses, taxes, and interest.

10

A decrease in price never affects total profit.

 
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